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GST or Goods and Services Tax is levied on most of the products and services sold in India. Since the provision of education is also a service, GST becomes applicable here too. To understand how GST on educational services works, let us first check out the definition of education. 

The CGST Act itself does not define the term education. However, as per the Supreme Court’s decision, education has been defined as follows —‘Education is the process of training and developing knowledge, skill and the character of students by normal schooling.’

Group and Service Code for Educational Services

Before we look at the rates of GST on educational courses, let’s understand how educational services are classified under the Act. Basically, these services come under Heading 9992. Thereafter, they are classified into six groups and cover a wide range of education from pre-primary to specialised and other educational services.

Check out the main groups and service codes for the services under this category.

Heading and Group

Service Code (Tariff)

Description of Service

Heading 9992

-

Education services

Group 99921 

-

Pre-primary education services

 

999210

Pre-primary education services

Group 99922 

-

Primary education services

 

999220

Primary education services

Group 99923 

-

Secondary Education Services

 

999231 

Secondary education services, general 

 

999232 

Secondary education services, technical and vocational

Group 99924 

-

Higher education services

 

999241

Higher education services, general

 

999242

Higher education services, technical

 

999243

Higher education services, vocational

 

999249

Other higher education services

Group 99925 

-

Specialised education services

 

999259

Specialised education services

Group 99929 

-

Other education & training services and educational support services

 

999291 

Cultural education services

 

999292

Sports and recreation education

services

 

999293

Commercial training and coaching

services

 

999294

Other education and training

services n.e.c.

 

999295

Services involving conduct of

examination for admission to

educational institutions

 

999299

Other Educational support services

GST on Educational Services

Now that you know how the educational services in India are classified, it becomes easier to understand how GST on education is levied. Check out the table below to see what the education rates on GST   are for different kinds of services in this category. 

Chapter, Section or Heading

Description of Services

Rate or Notification 

9992

Education services

18% ( 9% Central Tax + 9% State Tax)


Serial No. 30 of Notification No. 11/2017 - Central Tax (Rate) dated 28th June, 2017

9992

Services provided –

  1. by an educational institution to its students, faculty and staff;

  2. to an educational institution, by way of -

  • transportation of students, faculty and staff;
  • catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
  • security or cleaning or housekeeping services performed in such educational institution;
  • services relating to admission to, or conduct of examination by, such institution; up to higher secondary:

Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent

NIL


Serial No. 66 of Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017

9992

Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme: 
  • two year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management;
  • fellow programme in Management; 
  • five-year integrated programme in Management.

NIL 


Serial No. 67 of Notification No. 12/2017- Central Tax (Rate) dated 28th June 2017

90 or any other chapter

Technical aids for education, rehabilitation, vocational training and employment of the blind such as Braille typewriters, Braille watches, teaching and learning aids, games and other instruments and vocational aids specifically adapted for use of the blind Braille instruments, paper etc.

5%


Serial No. 257 of Schedule I of the Notification No. 1/2017-Central Tax (Rate) dated 28th June 2017

9023

Instruments, apparatus and models, designed for demonstrational purposes (for example, in education or exhibitions), unsuitable for other uses

28 %


Serial No. 191 of Schedule IV of the Notification No. 1/2017-Central Tax (Rate) dated 28th June 2017

Learn more about the GST slab rates for various goods and services in our detailed article GST Rates in India.

Exemption of GST on Educational Services

In addition to knowing the rates of GST on educational services, you also need to know the exemptions. Here is a closer look at the exemptions available to educational institutions under GST. 

 

  • Course materials

  • Curriculum-related materials

  • Entrance examination fees

  • Any excursions or trips related to the course, which is a part of curriculum requirement (food and accommodation on such trips is not exempt)

  • Student administrative services like registration, printing academic transcripts, late fee payments, library administration, issuing and replacing student cards, etc.

  • Transportation of students, faculty, and staff

  • Security and housekeeping services at educational institutions

  • Admission and exam conduction services by institutions that offer education up to higher secondary level

Apart from these services, education provided by the following entities is also exempt from GST on educational institutions.

 

  • National skill development corporation set up by the government of India

  • National skill development corporation approved sector skill councils

  • National skill development corporation approved assessment agencies

  • National skill development programs approved by NSDC 

  • Vocational skill development programs approved under national skill certification and monetary reward scheme

  • Any scheme implemented by the NSDC with its training partners

And in case of IIMs, the following services are exempt from GST on education. 

 

  • 2 year full-time residential PG programs in Management for Post Graduate Diploma in Management (for which admission is granted via CAT)

  • Fellowship programs in Management

  • 5 Year Integrated Programs in management studies (excluding the Executive Development Program)

Besides exemptions on educational services various other goods and services are exempted under GST, learn more about it in our article GST Exemption.

Place of Supply for GST on Educational Services

Goods and Services Tax is a tax that is based on the destination. This means that the educational services will be taxed at the place in which they are consumed and not in which they are provided. That said, the place of supply is important because you need to decide if a transaction is interstate or intrastate. 

Scenario 1: Place of Supply if Supplier and Recipient are in India

In this case, two sections are important — namely sections 12(6) and 12(7).

Section 12(6): In case of admission to an educational institution, the place of supply will be the place where the event is actually held.

Section 12(7): This section deals with the following services —

 

  • Organising a cultural, artistic, sporting, scientific, educational or entertainment event  (this includes the supply of services for a conference, exhibition, fair, celebration or other such events).

  • Services ancillary to organising any of the events or services referred to in clause (a).

For these services, the place of supply will be decided as follows —

 

  • If the service is provided to a registered person, the place of supply is the location of such a person.

  • If the service is provided to anyone other than a registered person, the place of supply is a location where the event is actually held.

  • If the event is held outside India, the location of the recipient is the place of supply.

Scenario 2: Place of Supply if Supplier or Recipient is outside India

In this case, the place of supply will be the place where the educational event is actually held.

Composite and Mixed Supply in Education Sector

Sometimes, two or more services may be provided together, in a mixed manner. These are known as composite or mixed services. In the education sector, too, this kind of bundling of services exists. 

 

  • In the case of boarding schools, where education, boarding and lodging are all offered in an inseparable manner, the services are exempt from GST.

  • In the case of dual qualifications, since the course, fees and curriculum for each qualification is separately prescribed, GST will also be applied separately.

Conclusion

This sums up the rates of GST on educational services as well as the common exemptions. So, if you are a recipient of these services, you can be more aware of the GST charged on them. Alternatively, if you are a provider of educational services, knowing these details can help you pay GST at the right rates. 

GST on Education FAQs

  • ✔️Is there GST on school fees?

    Yes, GST is levied at 18% on school fees.

  • ✔️Is GST applicable for coaching classes?

    Yes, the services offered by coaching institutions, like coaching classes, are subject to GST at 18%. 

  • ✔️Is there GST on yoga classes?

    Yes, any yoga classes offered by educational institutions attract GST at the rate of 18%.